MILWAUKEE (AP) — Joy Global will pay Rowan Companies $1.1 billion in cash for mining and oil and gas drilling equipment maker LeTourneau, the companies said Monday.
Joy, which posted $3.5 billion in revenue last fiscal year, will look to LeTourneau's offshore and land oil rigs for growth. Joy Global's P&H Mining business is already a dealer for LeTourneau in some regions.
The boards of both companies have approved the deal and if approved by regulators, it should close within 60 days, Joy said.
LeTourneau Technologies Inc. reported $815 million in revenue in 2010, with $556 million from its drilling products business and $259 million in mining revenue. Joy Global, based in Milwaukee, said the company will add to its profit this year excluding transaction costs and an accounting charge.
Rowan Companies Inc. said it expects about $875 million in proceeds from the sale after taxes. The Houston company plans to spend most of that money on its offshore oil drilling business.